Advanced Artificial Intelligence

Lord Londesborough Excerpts

Monday 24th July 2023 Lords Chamber

[Lord Londesborough (CB)]

My Lords, first, I salute my noble friend Lord Ravensdale for securing this much-overdue debate. AI is a huge and challenging subject, so my focus today will be limited to its potential economic impact. I refer to my interests as set out in the register as an adviser and investor in start-ups and early-stage ventures.

I must confess that, like the noble Viscount, Lord Colville, I was briefly tempted to outsource my AI speech to a chatbot to see if anybody noticed. I tested two large language models; within seconds, both delivered 500-word speeches, which were credible if somewhat generic. AGI—artificial general intelligence —will soon be able to write my speeches in my personal style, having scraped Hansard, and deliver it in my voice through natural language understanding, having analysed and processed my speeches on parliamentlive.tv, and with no hesitation, repetition or deviation.

Is it an exciting or alarming prospect that your Lordships might one day be replaced by “Peerbots” with deeper knowledge, higher productivity and lower running costs? This is the prospect for perhaps as many as 5 million workers in the UK over the next 10 years. That said, the UK economy is in dire need of AI to address low productivity and growth, and critical capacity constraints, most notably our workforce. The economy model of adding millions of low-skilled jobs, or making people work longer hours, is not sustainable. We have an ageing population, a shrinking workforce, record numbers of long-term sick and a health sector in perpetual crisis with unprecedented waiting lists. We need a qualitative, not quantitative, approach to economic growth and AI could play a critical role.

The UK’s productivity has been in the doldrums for almost 20 years, with output per hour well down on the levels in Germany, France, the US and many other countries. Forecasts on the economic impact of AI vary wildly, with some forecasting 20% to 30% rises in productivity, set against the disappearance of up to 30% of jobs. It is educated guesswork at this stage. Some predict that AI will lift GDP growth by an additional, but hugely significant, 2% per annum. A word of warning: we had similar expectations with the digital revolution. If you look back over the last 25 years, we have indeed witnessed extraordinary changes both as workers and consumers: the smartphone, e-commerce, automation, video communications, contactless payments, and working from home. However, in the decade leading to the pandemic, when GDP growth averaged a modest 1.8% per annum, 1.2% of that growth came from working longer hours, 0.5% came from capital investment and just 0.1% came from innovation and better working practices.

While AI looks set to have a transformative impact on our working practices, as the digital world has done, the big question remains over the net impact on economic growth. As with the digital economy, the risk is that AI may ultimately lead to a few dominant tech giants with huge market share, and further skew the distribution of wealth.

I appreciate that this will be a global dynamic largely beyond the control of our Government, but I conclude by asking the Minister two questions. First, how will the Government nurture a multiplicity of AI players in the UK rather than a dominant few? Secondly, mindful of the recent cuts in R&D tax credits in this year’s Budget, how will SMEs be incentivised to adopt and invest in AI technology to boost their productivity and competitive edge?